Taxes on tourists going up

Daily Herald story

Quote from the story---"Finance Minister Richard Gibson Sr. was quick to point out, on Wednesday, that the increases are not upping of taxes, but rather it is the “indexation” of the taxes “to bring them up to date” after years at the same level. There are “not necessarily increases, but it is for those taxes to have the same purchasing power it had before,” said Gibson Sr. ” Horsehockey...

Only a politician could mangle the English language. Higher taxes due to indexing could effect tourism.

OMG LOL
But I hope they don't get too indexed!

"Gibson Sr. compared the room tax on Aruba with the local yield. Aruba collects some 23.5 per cent of the bill of each hotel guest, while St. Maarten collects five per cent. “Something has to be done to make our room taxes more in line with the region,”"

That doesn't sound right at all.

There's an Aruba Tourism Tax of 9.5%, which replaced both the old 1.5% Sales Tax on rooms plus the old 6% Room Tax. There is also a flat-rate Environmental fee of a few dollars per night, based on room type. The difference between 9.5% and the minister's quoted 23.5% (or more!) is the hotel's Service Charge/Resort Fee. Hilton currently charges an additional 15% Service Charge. The Aruban government gets the 9.5% plus the few dollars of the Environmental fee, but nowhere near 23.5%. The hotel keeps the rest.

Well, most places are already collecting 15-20% and calling it tax anyways...

LaVista does not have extra levy of any kind. $1/day SMTA donation is voluntary.

$50/week SXM Govt. tax is collected.

That's the timeshare tax that everyone is aware of. Other resorts also add a service charge, in addition to the timeshare tax.

Thought they have an optional wifi fee.

Optional fee for WiFi is not a tax or an additional fee for something hidden. It's the purchase of a service you can choose to use or not. Other timeshares charge a utility surcharge and/or a service charge and there is no choice but to pay it. La Vista owners pay only our (very reasonable) maintenance fee, the usual $50 timeshare tax, and any other items we choose are optional.

SBR, like every TS, collects the TS tax of $50/week...no charge for WiFi....also has the $1/day program which is optional

I'm aware of the timeshare tax. At least that is a legitimate charge. I am talking about numerous hotels who charge 15-20% and call that a tax. One example is Sonesta, they charge an extra 21% and they call it tax. Simpson Bay Resort and others do it as well. I always stay at my timeshare for 1 week and add 3 extra days there or at other hotels and always find they charge 15-20% and call it tax, but in reality the tax rate should be 5% and built in to the room rate, not charged extra.

Some hotels do that, yes, and lie and call it tax, when it's really a service charge, and some places claim the room tax is more than 5%. Beachside Villas is one resort that does NOT do that. They charge the government 5% tax, nothing extra added for service charge, and have full maid service every day.

SHTA against room tax hike

OMG - what are they doing to our wonderful island????

The inept Government decisions, corruption, questionable off shore investment (the Chinese project and the Blue Mall ugly elephant in Cupecoy), poor judgement with immigration laws that have led to numerous crime issues...

My heart hurts for the island, the good people that live there and us tourists who like to think of it as our second home.

I don't really think 5% hotel tax is that bad for a resort Island. We normally pay 20% which is hotel tax and the 15% service charge at many Dutch side hotels. Some business try to even add the turn over tax. Seems like these extra charges creep into about everything we buy anywhere we go. I don't mind a small increase as long as its really used for something the Island can see and need.

I don't think anyone is complaining about the 5% hotel tax. They are talking about raising that tax quite significantly though. I personally DO have a big problem with paying 15% service charge, which to me is BS. Build it into your price, don't try to hide stuff.. Turnover tax is NOT supposed to be passed on directly to the consumer at all, by law.